Sherman has budgeted sales for the upcoming quarter as follows: The desired ending finished goods inventory for each month is one-half of next month's budgeted sales.Three pounds of direct material are required for each unit produced.If direct material costs $5 per pound,and must be paid for in the month of purchase,the budgeted direct materials purchases (in dollars)for April are:
A)$17,500.
B)$40,500.
C)$26,250.
D)$38,250.

Question

Sherman has budgeted sales for the upcoming quarter as follows:  The desired ending finished goods inventory for each month is one-half of next month's budgeted sales.Three pounds of direct material are required for each unit produced.If direct material costs $5 per pound,and must be paid for in the month of purchase,the budgeted direct materials purchases (in dollars)for April are:
A)$17,500. 
B)$40,500. 
C)$26,250. 
D)$38,250.

Quizplus · Accepted Answer

The Answer of Sherman has budgeted sales for the upcoming quarter as follows:  The desired ending finished goods inventory for each month is one-half of next month's budgeted sales.Three pounds of direct material are required for each unit produced.If direct material costs $5 per pound,and must be paid for in the month of purchase,the budgeted direct materials purchases (in dollars)for April are:
A)$17,500. 
B)$40,500. 
C)$26,250. 
D)$38,250.

Sherman Has Budgeted Sales for the Upcoming Quarter as Follows